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The fund dilemma

Chris Warren weighs up the pros and cons of active and passive funds.

Fund dilemma Although the Financial Conduct Authority has been clear to state that it does not advocate passive or active strategies, particularly since the Asset Management Study, it has become apparent that value for money from differing investment strategies is quite rightly under the microscope more than ever before.

It is widely acknowledged that in the UK we have witnessed a seismic shift in terms of how much clients invest via various types of passive strategy. With efforts to drive down portfolio costs across financial services, this is entirely understandable. But so much of the narrative has been focusing on passive or active, with both sides seemingly drawing up battle lines. It is more prudent to consider the best of what both sides might bring to the party when aiming to navigate the changing fortunes of markets for investors over time.


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